Activision Cuts Losses; Stock Drops on Weaker Outlook
Activision Blizzard on Wednesday posted narrower quarterly losses on the back of better-than-expected sales of blockbuster video games like Call of Duty: Black Ops and the latest from its World of Warcraft franchise.
However, the company’s shares slid more than 6% after-hours after Activision issued a forecast for the current quarter and fiscal year that were both sharply lower than Wall Street’s expectations.
The company also said it’s discontinuing its once-popular Guitar Hero franchise, citing a sharp slowdown in the sales of music games. Another title, True Crime: Hong Kong, had been expected this year but will also be killed, Activision said.
